31A-18-103. Authorized investments.

299 words·~1 min read·/ut/title-31a/chapter-18/31a-18-103

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

Effective 5/7/2025

(1)Subject to the provisions of this chapter, an insurer may, to the same extent as any other person under the laws of this state and the United States:

(a)loan or invest the insurer's funds; and

(b)buy, sell, hold title to, possess, occupy, pledge, convey, manage, protect, insure, and deal with the insurer's investments, property, and other assets.

(2)The board of directors, in handling an insurer's investments, shall:

(a)exercise the judgment and care of a reasonable person in the management of a similar enterprise, not in the context of speculating, but in the context of the permanent disposition of the insurer's funds;

(b)consider the probable income of an investment as well as the probable security of the insurer's capital;

(c)ensure the insurer's investments are of sufficient value, liquidity, and diversity for the insurer to meet the insurer's outstanding obligations based on reasonable assumptions regarding new business production for the insurer's current lines of business; and

(d)consider the prudence evaluation criteria described in Section 31A-18-105 .

(3)An insurer shall establish and implement internal controls and procedures that ensure:

(a)compliance with the insurer's investment policies;

(b)the insurer's investment staff and any consultant the insurer uses are reputable and capable;

(c)a periodic evaluation and monitoring process occurs for assessing the effectiveness of investment policy and strategies;

(d)the insurer's management's performance is assessed based on the stated objectives within the investment policy;

(e)the insurer undertakes appropriate analyses of the degree to which asset cash flows adequately meet liability cash flows under different economic environments; and

(f)the insurer conducts the analyses described in Subsection (3)(e) at least annually and makes specific reference to economic conditions.

Repealed and Re-enacted by Chapter 368 , 2025 General Session